Malaysia Flags Binance, eToro as ‘Unauthorized’ Firms

It is not clear if these companies can continue to offer their services.

The Securities Commission of Malaysia (SC) has added crypto exchange Binance to its list of unauthorized firms operating in the country.

“Operating a recognized market without authorization from the SC,” the regulator noted in its remarks.

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The southeast Asian country’s regulator has specified Binance.com, the primary exchange platform of the company that offers both crypto-to-fiat and peer-to-peer trading services using the local fiat.

Along with Binance, the SC has added nine other financial companies including eToro, OctaFX, FintechFX, and Fis Fidelity Solution to the list.

For most of the companies, it highlighted that they are “carrying out capital market activities of dealing in securities and derivatives without a valid license.”

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It also flagged some for fund management, financial planning, and even misusing SC’s logo.

“The public is advised not to make any investment with companies/individuals that are not licensed or approved by the SC,” the regulator warned.

However, it is not clear how the Malaysian regulator is planning to take action against the platforms on the list including Binance and if they can still continue to offer their services in the country.

Not the regulators’ favorite

Notably, this is not the first regulatory notice against Binance when the exchange is aggressively pushing for its global expansion. Most recently, the crypto exchange mammoth was banned in Brazil from offering any crypto derivatives as these instruments fall under securities. If the crypto exchange is willing to continue to offer derivatives, it needs to obtain a license from the regulator.

Earlier this year, the regulator in Malta also clarified that the exchange was not authorized by it and does not fall under its purview – many media companies were regularly citing the exchange as Malta-regulated.

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